2. Mike is looking to purchase a Ford Explorer, which has a sticker price of $32,415. He's able to negotiate $3,000
off sticker price, and the tax rate is 6.5%. License and title fees are $395. If he trades in his minivan for $9,000
(deducted from the negotiated price before taxes), the monthly payment will be $500.95 for 60 months. He is
also offered a lease with $2,900 down and payments of $429 for 36 months.
a) How much will Mike pay total if he chooses the lease option?
b) How much more will he pay in the first three years if he chooses to buy instead?
c) How much interest will he pay if he buys?
d) Which option would you choose? Explain.
3. Maya bought a new Ford Focus for $17,400. She made a down payment of $4,000 and made monthly payments
of $396 for three years. Find the APR.